A South Florida lawmaker wants the state to add $30 million to a dwindling seed fund to help startup companies grow to the next level by financing their product testing.

It’s a crucial effort: The period after a product has been researched and before it has been commercially tested is called “death valley” by company founders because the product usually dies without the $25,000 to $300,000 needed to prove it has commercial applications.

The ability to prove commercial viability is critical, said Thomas O’Neal, founder and executive director of the University of Central Florida Business Incubation Program: “They’re not going to get to the next level without gap funding.”

Giving a fiscal boost to startups not only helps them survive, but also creates high-wage jobs, which helps the overall economy. In addition, entrepreneurs involved in startups usually create additional companies, attracting more capital investment.

That’s why state Sen. Jeremy Ring, D-Margate, wants to add $30 million to the Florida Institute for the Commercialization of Public Research’s Seed Capital Accelerator Program, which got $8.5 million from the 2011 Legislature to fund testing a company’s product viability and marketability.

The institute has committed $5.4 million to 18 companies since being launched in August 2011, but has applications worth $28.5 million from 94 companies. The fund is expected to run out of money early next year. Ring plans to draft a bill for the 2013 session of the Legislature to add $30 million to the fund.

To be eligible for loans of $50,000 to $300,000, companies must come up with funds equal to their loan amount.

Ring’s proposal stands a good chance of moving forward, said Fred Leonhardt, a government attorney for GrayRobinson PA in Orlando and board member of Enterprise Florida, the state agency overseeing efforts to diversify the economy. Leonhardt believes the Legislature wants to back projects encouraging business growth.

He also believes money may be available for the fund because state revenue is growing for the first time in five years. Florida’s general revenue — which makes up nearly half the state budget and mainly comes from the state sales tax — is expected to grow by $2.6 billion for fiscal year 2013-14, up from $24.9 billion in 2012-13, according to the state’s Revenue Estimating Conference.

“This will be a good session for economic development,” Leonhardt said.

The fund is intended to commercialize research projects at universities and research institutions, like the one by nSolgel LLC, a company co-founded by Sudipta Seal, director of the University of Central Florida NanoScience Technology Center. Seal has been researching whether he could make building material from the ash collected from the burning of coal to generate power.

Seal has been making small batches of a material he calls Zerocrete, but needs more money to test whether the product can be made in large quantities and is commercially viable. “This fund will help small business flourish,” said Seal.

“Not all startups are going to make it, but we are trying to improve the odds of success,” said Jamie Grooms, CEO of Florida Institute for the Commercialization of Public Research.